Assumptions about the unit variable cost


Based on company X initial investment (licensing fee $89.9 million and advertising budget $100 million), what is the breakeven for the number of subscribers assuming there is a five-year lifetime for a customer? You will have to make some assumptions about the unit variable cost (assuming unit variable cost is $10). Also, pick a suitable price and remember to project out the life time value of the customer. Both revenues and costs should be based on the 5 year projection.

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Business Management: Assumptions about the unit variable cost
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